Bloomberg – Australian dollar and US stock futures rose in early Asian trading on Monday, amid signs of improving relations between the United States and China, while benchmark contracts in Asia worked near stabilization.
The Australian dollar rose against the US dollar, adding to its gains of 2% last week – the third consecutive weekly gain for the Australian dollar against the dollar. The advance attracted hedge funds to sell the currency.
The small advance at the beginning of the trading session takes place in front of the Positive signs of improvement in Sino-American relationsas well as continued optimism that China will apply new incentives to enhance its recovery.
US Secretary of State Antony Blinken held “frank” talks with his counterpart in Beijing in a meeting that lasted longer than planned. President Joe Biden said Saturday (17) that he looks forward to meeting with Chinese President Xi Jinping in the coming months.
Australian and Hong Kong stock futures declined slightly, reflecting the decline in US stocks on Friday (16), while Japanese contracts showed slight progress.
Investors are watching closely Signs of more official support for the Chinese economy After the country lowered its main borrowing rate last week. The country is expected to cut one-year and five-year base loan rates in decisions expected on Tuesday (20), according to economists’ forecasts.
Nomura Holdings, Standard Chartered and Morgan Stanley said authorities may increase the share of private domestic government bonds to fund infrastructure investments in a potential stimulus package to boost growth.
US stock and bond markets will be closed for a holiday on Monday. The S&P 500 fell 0.4% on Friday, ending a six-session winning streak as investors sought more information on the federal policy decisions.
Federal Reserve Chairman Jerome Powell will present his semi-annual report to Congress on Wednesday (21st). President of the Federal Reserve Bank of St. Lewis, James Pollard, and their colleagues are scheduled to speak in New York and Chicago in the coming days.
a The Federal Reserve kept interest rates unchanged last week. But he warned of further tightening in the future. In the past, a three-month pause in rate hikes after a series of hikes boosted stocks.
Other key central bank developments this week include policy meetings in Brazil, Turkey, the UK and Switzerland.
See more at bloomberg.com
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